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Sihuan Pharmaceutical Holdings Group Ltd. 四環醫藥控股集團有限公司 2013 Interim Results Presentation Stock Code : 0460 Disclaimer The sole purpose of this Presentation (the “Presentation”) is to assist the recipient in deciding whether it wishes to proceed with a further investigation of Sihuan Pharmaceutical Holdings Group Ltd. (the “Company”) and it is not intended to form the basis of any decision to purchase securities, interests or assets in or of the Company. This Presentation does not constitute or contain an offer or invitation or recommendation or solicitation for the sale or purchase of securities, interests or assets in or of the Company and neither this document nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. 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Any prospective purchaser interested in purchasing securities, interests or assets in or of the Company or evaluating the Company is recommended to seek its own financial and other professional advice. 1 Agenda Results Highlights I Business Review II Financial Review III Growth Strategy IV Q&A V 2 Section 1 Results Highlights 3 Major Achievements in 2013H1 1 Remarkable results with revenue and net profit up by 67.3% and 33.8% to RMB2,325 million and RMB618 million respectively 2 Robust sales growth, mainly attributable to rebounds of key products: Kelinao and Oudimei Continued strong growth of promising products: Yuanzhijiu, Yeduojia, Danshen Chuanxiongqin 3 Maintained market leadership 1st in CCV prescription market with a market share of 8.9% 3rd largest pharmaceutical company in Chinese prescription drug market 4 3 Category 1.1 innovative drugs recently gained clinical trail approval; 11 5 in total to date in 2013 Strong R&D pipeline for first-to-market generic drugs, 17 Category 3.1 new drugs under development 5 APIs production facility passed US FDA on-site inspection. New breakthrough of international collaboration 4 Section 2 Business Review 5 Continuous Growth of Pharmaceutical Market China’s Total Hospital Purchases China’s Total Hospital Purchases of (RMB Bn) CCV Drugs (RMB Bn) Growth of CCV drugs outpaced industry growth rate 73.2 442 366 313 46.3 257 243 37.9 39.9 203 30.4 23.4 2008 2009 2010 2011 2012 2013H1 2008 2009 2010 2011 2012 2013H1 Source: IMS *Higher growth in 2012 than previous years mainly due to inclusion of TCM drugs in IMS data Pharmaceutical industry continues to grow on the back of the accelerated pace of urbanization, aging population and expanded national medical insurance coverage Consolidation in the industry is intensifying due to medical reform, tightening control of hospital medical budget, spiraling price competition and the implementation of the new GMP standard 6 Leading Market Position Top 10 Corporations in China’s CCV market in 2013H1 Shares in hospital market Rank Top 10 Corporations in 2013H1 (%) 1 PFIZER GROUP(辉瑞) 2.43% 2 ASTRAZENECA GROUP(阿斯利康) 1.86% 3 SIHUAN GROUP(四环医药) 1.67% 4 SANOFI GROUP(赛诺菲) 1.65% 5 SHANDONG QILU FTY(山东齐鲁) 1.61% 6 BHC GROUP(拜耳医药保健) 1.58% 7 ROCHE GROUP(罗氏) 1.54% 8 JS.YANGZIJIANG FTY(江苏 扬子江) 1.51% 9 KE LUN GROUP(科伦) 1.48% 10 NOVARTIS GROUP(诺华集团) 1.24% Top 5 players in China’s CCV market in 2013H1 (Market share) 8.85% 4.78% 4.58% 4.30% 3.69% Sihuan Sanofi Pfizer Shandong Guangxi Qilu Wuzhou Source: IMS 7 Market Leading Position for Key Non-exclusive Products Sihuan’s Generic Name Sihuan Market Share by Ranking Top 5 Pharmaceutical Companies and Their Market Brand Name (Total revenue) and Percentage in 2013H1 Share in 2013H1 Ranked No.2 Sihuan 1. Qilu (山东齐鲁), 57.35% (2012: No.3) Ganglioside M1 14.07% 2. Sihuan (四环医药), 14.07% GM1 (RMB2,640 mil) others 3. Harbin Medical University (黑龙江哈尔滨医大), 11.84% 85.93% 4. Taiji Xinan Pharm (太极西南药业), 5.73% 5. BJ Saisheng Pharm (北京赛生), 5.52% Ranked No.3 Sihuan, 1. BJ Taide (北京泰德), 43.91% others, 2. Hayao Biological (哈药生物), 21.58% Alprostadil 17.48% Yimaining 82.52% 3. Sihuan (四环制药), 17.48% (RMB1,966 mil) 4. Xian Libang Pharm (西安立邦), 8.19% 5. Chongqing Yaoyou (重庆药友), 3.58% Salviae Ranked No.2 Sihuan Miltiorrhizae and others 16.85% Danshen Ligustrazine 1. Guizhou Baite (贵州拜特制药), 83.15% Chuanxiongqin Hydrochloride 83.15% 2. Sihuan (四环医药), 16.85% Injection (RMB1,499 mil) Ranked No.1 Sihuan 1. Sihuan (四环医药), 23.82% Cerebroprotein 23.82% 2. Yunnan Mengsheng (云南盟生), 22.95% Qu’Ao Hydrolysate 3. Shanxi Pude Pharm (山西普德), 19.98% (RMB784mil) others 4. GD Longfu Pharm (广东隆赋), 17.52% 76.18% 5. GD Baike (广东百科), 5.18% Ranked No.1 1. Sihuan (四环医药), 58.77% 2. Hefei Pingguang (合肥平光), 30.89% Ligustrazine Chuanqing 3. Shandong Tianfu (山东天福), 3.78% (RMB258 mil) Sihuan, others, 4. Neptunus Group (海王集团), 2.92% 58.77% 41.23% 5. Fujian Mindong Jiexun (福建闽东捷迅), 1.30% Ranked No.3 1. Simcere Dongyuan (先声制药), 22.95% (2012: No.4) Sihuan, 2. Jilin Boda Pharm (吉林博大), 22.58% Edaravone others, Qingtong 17.03% 3. Sihuan (四环制药), 17.03% (RMB1,365 mil) 82.97% 4. Anhui Guorui Pharm (安徽国瑞), 16.99% 5. Kunming Taikang (昆明泰康), 13.50% 8 Diversified Product Portfolio: Product Sales Contribution Breakdown in terms of Hospital Purchase Price (IMS Figure) For the six months ended 30 June 2013 *Promising Product Bi'ao, 1.67% Others, 1.60% (Products launched after Pojia, 1.81% HKEx listing in 2010) Luoanming, 3.53% Chuanqing,3.72% *Oudimei, 19.24% *Danshen Chuanxiongqin, Kelin'ao, 4.16% Qu'ao, 4.58% 14.82% Anjieli, 4.66% GM1, *Yeduojia, 9.12% 4.99% *Guhong, *Yimaining, 5.19% Qingtong, *Yuanzhijiu, 8.44% 5.71% 6.76% Remarks: Product with contribution less than 1% are not displayed Source: IMS 9 More Balanced Revenue Stream Revenue of CCV Products For the six months For the six months 2013H1 Contribution